Essay on Assignment 1 Whistleblowing and Sarbanes Oxley Due
Artize L. Johnson
Professor: Steve Harris
Law, Ethics, & Corporate Governance
26 April 2015
According to Halbert, Ingulli, & Frey (2015), whistleblowers are people who decide to report unethical or illegal activities, usually activities under the control of their employers. They may be working for private companies, nonprofit organizations, or for the government. A whistleblower is an individual working in an organization who decides to expose the misconduct, misbehavior, or illegal actions occurring in that organization. Making the decision to expose these actions can be very difficult to disclose with the fear of repercussion. The information being disclosed to …show more content…
I believe that the whistleblower in the case of J.P. Morgan was justified I his actions of reporting the companies misconduct and unethical behavior. As an employee of any organization it is our duty to report any unethical behavior to the proper authorities being committed by an organization. It becomes our civic duty as American citizens to report misconduct. According to Halbert, Ingulli, & Frey (2015), whistleblowers react first and must worry about the reach of “public policy” later. Characteristically unable to remain passive in the face of what they believe is wrong, they speak out.
Protection under the Sarbanes-Oxley Act
According to Halbert, Ingulli, & Frey (2015), in 2002 Congress passed corporate fraud reform legislation with whistleblower provisions protecting those who report financial misconduct in publicly traded companies. This law is known as Sarbanes-Oxley, or SOX. This law was introduced from the incidents or scandals from the major firms known as Enron and Worldcom. According to the SOX Act whistleblowers of publicly traded companies are protected even former employees are protected when the activity they were involved in occurred during their employment.
According to Marchall & Williams (2007), SOX protects employees of publicly traded companies and their subcontractors. The definition of “employee” is broad under the statute, and generally includes present and former workers, supervisors,